Keppel DC Reit posts 12.8% rise in H1 DPU to S$0.05133

[SINGAPORE] Keppel DC Reit posted a 12.8 per cent increase in distribution per unit (DPU) to S$0.05133 for its first half of the financial year ended Jun 30, from S$0.04549 in the same year-ago period.

This was attributed mainly to contributions from the acquisition of data centre buildings Keppel DC Singapore 7 and 8, Tokyo Data Centre 1, and contract renewals and escalations.

The distribution will be paid on Sep 15, after the record date on Aug 4.

Revenue was up 34.4 per cent at S$211.3 million for the half year, from S$157.2 million in H1 FY2024, said the manager of the real estate investment trust (Reit) in a bourse filing on Friday (Jul 25). 

Distributable income rose 57.2 per cent to S$127.1 million from S$80.9 million, where the increase was partially offset by the divestment of Kelsterbach Data Centre in March 2025 and Intellicentre Campus, in addition to the absence of a one-off dispute settlement sum received in 2024.

Net property income increased by 37.8 per cent to S$182.8 million from S$132.6 million. 

As at Jun 30, aggregate leverage was at 30 per cent. Interest coverage ratio stood at 5.9 times. 

Average cost of debt decreased to 3 per cent for H1, due to benefits from lower floating rates compared with the same period a year prior. Total borrowings stood at S$1.6 billion, with 76 per cent hedged through interest rate swaps as at Jun 30.

Keppel DC Reit recorded a portfolio occupancy of 95.8 per cent, with portfolio weighted average lease by lettable area at 6.9 years. 

While global macroeconomic conditions look uncertain amid shifting trade policies, the possibility of higher tariffs and persistent geopolitical tensions, industry fundamentals such as the rapid commercialisation of generative artificial intelligence is favourable for Keppel DC Reit as the industry is poised for “robust growth”, said the manager of the Reit.

Units of Keppel DC Reit closed 0.9 per cent or S$0.02 lower at S$2.26 on Thursday.